Toronto Real Estate Board

Toronto Real Estate Board

February 04, 2015 07:00 ET

Greater Toronto Realtors® Report Commercial Market Figures

TORONTO, ONTARIO--(Marketwired - Feb. 4, 2015) - Toronto Real Estate Board President Paul Etherington announced that, in January 2015, TREB Commercial Network Members reported 347,046 leased square feet of industrial, commercial/retail and office space within the TREB market area for which pricing was disclosed on a per square foot net basis. This result was down by 19.7 per cent compared to 431,941 square feet of combined space leased in January 2014. Over three-quarters of leased space was accounted for by the industrial market segment.

The average lease rate for industrial space was virtually unchanged compared to a year ago. Both the commercial/retail and office lease rates were up substantially on a year- over-year basis, but most of this increase was the result of a compositional shift in the size of properties leased this year compared to last. Last year, a greater share of larger properties were leased. Larger properties tend to lease for less on a per square foot net basis.

"The next 12 months will be an interesting period of time for commercial real estate in the Greater Toronto Area. On the one hand, we have the potential for the drop in oil prices to impact the Canadian economy as a whole. On the other hand, we have the potential positive impacts of the lower Canadian dollar on exports from southern Ontario. As we move toward the spring, we should have a better indication of the net effects on commercial real estate markets in the GTA," said Mr. Etherington.

The number of industrial, commercial/retail and office sales in January 2015, at 49, was almost unchanged compared to January 2014 when 50 sales were reported. The year- over-year change in average sale prices reported on a per square foot basis were mixed. The average sale price for industrial properties was down compared to January 2014, but this was largely due to some very large properties changing hands this year. Larger properties generally sell for less on a per square foot basis. Commercial/retail and office selling prices were both up compared to last year.

January 2015: Per Square Foot Net Commercial Leasing Summary
Lease Transactions Completed on a Per Square Foot Net Basis with Pricing Disclosed on TorontoMLS
Leased Square Feet Average Lease Rate
Jan. 2015 Jan. 2014 % Change Jan. 2015 Jan. 2014 % Change
Industrial 266,575 356,440 -25.2% Industrial $5.20 $5.21 -0.1%
Commercial 42,288 36,005 17.5% Commercial $19.17 $15.65 22.5%
Office 38,183 39,496 -3.3% Office $13.71 $10.45 31.2%
Total 347,046 431,941 -19.7%
Source: Toronto Real Estate Board
January 2015: Commercial Sales Completed with Pricing Disclosed on TorontoMLS
Sales (Price Disclosed) Avg. Sale Price Per Sq. Ft. (Pricing Disclosed)
Jan. 2015 Jan. 2014 % Change Jan. 2015 Jan. 2014 % Change
Industrial 22 20 10.0% Industrial $80.88 $135.01 -40.1%
Commercial 18 24 -25.0% Commercial $208.34 $193.78 7.5%
Office 9 6 50.0% Office $313.53 $278.83 12.4%
Total 49 50 -2.0%
Source: Toronto Real Estate Board

Greater Toronto REALTORS® are passionate about their work. They are governed by a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Over 40,000 TREB Members serve consumers in the Greater Toronto Area. TREB is Canada's largest real estate board.

Contact Information

  • Media Inquiries:
    Mary Gallagher
    Senior Manager Public Affairs
    (416) 443-8158
    maryg@trebnet.com